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Fantom price movement after the proposal to cut token burn rate by 75%

By:
on Dec 2, 2022
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  • In a proposal posted on December 1, Fantom aims to cut the burn rate by 75%.
  • In the last 7 days, the value of the FTM cryptocurrency increased by 37%.
  • The trading volume of FTM also spiked by 17%.

Fantom (FTM/USD) published a proposal on December 1, where the project aims to implement an affiliate program for the decentralized application (dApp) developers with gas fees. 

Fantom is a directed acyclic graph (DAG) smart contract platform that aims to provide Decentralized Finance (DeFi) services to developers and uses the FTM token to solve issues surrounding transaction speed.

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The proposal of cutting the token burn rate as a catalyst for growth

Based on the data which was seen in the new proposal, the Fantom community aims to slash the protocol’s current FTM token burn rate from 20% to 5%, a 75% cut.

“We take what works in web2 and restructure it to fit the network’s priorities, which means taking the ad monetisation model and extending it to gas monetisation for performing dApps that manage to attract a steady stream of users.” the developers behind Fantom wrote surrounding the proposal.

Furthermore, the team also elaborated that Fantom’s Opera network is not competing against YouTube or Twitter but aims to attract and retain high-grade talent on a continual basis within the Web 3.0 space.

The dApps must have recorded 1,000,000 or more transactions and have spent three months or more on the network in order to quality for the incentive. 

Once approved, developers can claim 15% of the total gas fees spent on their dApp. 

Should you buy Fantom (FTM)?

On December 2, 2022, Fantom (FTM) had a value of $0.2469.

FTM/USD Chart by Tradingview

The all-time high of the Fantom (FTM) cryptocurrency was on October 28, 2021, when it reached a value of $3.46. Here we can see that the token was $3.2131 higher in value at its ATH, or 1,301% higher.

When we go over the 7-day performance of the cryptocurrency, Fantom (FTM) saw its low point at $0.178784, while its high point was $0.258136. Here we can see a $0.079352 difference from the low to the high point, or by 44%.

However, when we take a look at the 24-hour performance of Fantom (FTM), we can see that its low point was at $0.234568, while its high point was at $0.258906. Here we can see a difference of $0.024338 or by 10%.

Investors will want to take the opportunity to buy FTM, as the token can climb to $0.3 by the end of December 2022.